Can I withdraw my 401k during a bankruptcy to pay off student loans that are 3 months behind?
Question Details: I am going to court to meet with creditors in 10 days for my bankruptcy case. Will this hurt my case in any way?
I would advise you not to withdraw the funds until after the meeting of creditors. Doing so would change the nature of the funds from exempt to non-exempt, and thus, unless you have room under your personal property exemption to shield the withdrawal, could render them assets of the estae. Wait 10 days to play it safe.
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